Get your money ready! Spotify's price hike is coming

Spotify warned of an increase in subscription fees while introducing its new services and features.

According to the Financial Times, the company's co-chairman and chief operating officer, Alex Norstrom, announced that prices will increase due to the company's goal of reaching 1 billion users and investments in new features. In the interview, Norstrom stated that the planned services will be implemented with price increases, and that the increase will be applied globally.

FIRST, A REGIONAL PRICE INCREASE CAME

The Sweden-based company announced in early August that it would raise the price of its Premium individual subscription in some markets starting in September to increase profit margins. This will increase the price from €10.99 to €11.99 ($14.05) in South Asia, the Middle East, Africa, Europe, Latin America, and Asia-Pacific.

FIRST TIME TO ACHIEVE AN ANNUAL PROFIT

"Price increases and price adjustments are part of our business strategy. We will take these steps when they make sense," Norstrom told the newspaper.

Spotify made its first annual profit last year thanks to recent price adjustments and cost-cutting measures.